This document discusses project identification and selection processes. It describes corporate strategic planning and information systems planning, noting that IS planning can help identify projects that align with business objectives. Projects may be identified through top-down or bottom-up processes. IS planning involves describing the current and target situations and developing a transition plan. The document also discusses electronic commerce applications like the internet, intranets, and extranets.

1. Copyright 2002 Prentice-Hall, Inc.
Chapter 5
Identifying and Selecting
Systems Development Projects
5.1
Modern Systems Analysis
and Design
Third Edition
Jeffrey A. Hoffer
Joey F. George
Joseph S. Valacich

2. Learning Objectives
Describe the project identification and
selection process
Describe the corporate strategic
planning and information systems
planning process
Explain the relationship between
corporate strategic planning and
information systems planning
5.2

3. Learning Objectives
 Describe how information systems planning can be
used to assist in identifying and selecting systems
development projects
 Analyze information systems planning matrices to
determine affinity between information systems and
IS projects and to forecast the impact of IS projects
on business objectives
 Describe the three classes of Internet electronic
commerce applications:
Internet, Intranets and Extranets
5.3

4. Identifying and Selecting IS
Development Projects
Sources of projects
 Management and business units
 Managers who want to make a system
more efficient or less costly
 Formal planning groups
5.4

5. Identifying and Selecting IS Development
Projects
Projects are identified by
 Top management
 Steering committee
 User departments
 Development group or senior IS staff
Top-Down Identification
 Senior management or steering committee
 Focus is on global needs of organization
5.5

6. The Process of Identifying and Selecting
IS Development Projects
Bottom-up Identification
 Business unit or IS group
 Don’t reflect overall goals of the
organization
5.6

7. Identifying and Selecting IS Development
Projects
Classifying and Ranking IS
Development Projects
 Performed by top management, steering
committee, business units of IS
development group
 Value chain analysis is often used
 Method to analyze an organization’s activities
to determine where value is added and costs
are incurred
5.7

8. Identifying and Selecting IS Development
Projects
Selecting IS Development Projects
 Process of considering short and long-term
projects
 Projects most likely to achieve business objectives
are selected
 Decision requires consideration of:
 Perceived and real needs
 Potential and ongoing projects
 Current organizational environment
 Existing and available resources
 Evaluation criteria
5.8

9. Identifying and Selecting IS Development
Projects
Selecting IS Development Projects
 Outcomes
 Project Acceptance
 Project Rejection
 Delay
 Refocus
 End-User Development
 Proof of Concept
5.9

10. Identifying and Selecting IS Development
Projects
Deliverables and Outcomes
 Primary Deliverable
 Schedule of specific IS development projects
 Outcomes
 Assurance that careful consideration was given
to project selection
 Clear understanding of project’s relation to
organizational objectives
5.10

11. Identifying and Selecting IS Development
Projects
Knowledge of overall organizational
business strategy
 Improves project selection and
identification process
 Provides sound guidance throughout the
systems development life cycle
5.11

12. Corporate and Information
Systems Planning
Traditional Project
Identification and
Selection
 Solves isolated problems
 Focuses on business
processes
 Does not easily allow for
organizational change
Planning-Based
Approach to Project
Identification and
Selection
 Focuses on present and
future information needs
 Information needs
change slower than
business processes
5.12

13. Corporate and Information
Systems Planning
Need for planning
 Improperly planned projects result in
systems that cannot be shared across an
organization
 As business processes change, lack of
integration will hamper strategy and
business process changes
5.13

14. Corporate and Information
Systems Planning
Corporate Strategic Planning
 Process of developing and refining models
of the current and future enterprise as well
as a transition strategy
 Planning results in several outcomes
 Mission Statement
 Objective Statement
 Competitive Strategy
5.14

15. Corporate and Information
Systems Planning
Corporate Strategic Planning
 Mission Statement
 A statement that makes it clear what business
a company is in
 Objective Statement
 A series of statements that express an
organization’s qualitative and quantitative goals
for reaching a desired future position
 Objectives are critical success factors
5.15

16. Corporate and Information
Systems Planning
Corporate Strategic Planning
 Competitive Strategy
 The method by which an organization attempts
to achieve its mission and objectives
5.16

17. Corporate and Information
Systems Planning
Information Systems Planning (ISP)
 An orderly means of assessing the information
needs of an organization and defining the
systems, databases and technologies that will
best satisfy those needs
 Three key activities:
 Describe the Current Situation
 Describe the Target (or Future) Situation
 Develop a Transition Plan and Strategy
5.17

18. Corporate and Information
Systems Planning
Information Systems Planning
1. Describing the Current Situation
 Top-down Planning
 Generic methodology that attempts to gain a broad
understanding of the information system needs of the
entire organization
 Bottom-up Planning
 Generic methodology that identifies and defines IS
development projects based upon solving operational
business problems or taking advantage of some
business opportunities
5.18

19. Corporate and Information
Systems Planning
Information Systems Planning
1. Describing the Current Situation
(Continued)
 Planning team is chartered to model existing
situation
 Identification of Organizational:
 Locations
 Units
 Functions
 Processes
 Data
 Information Systems5.19

20. Corporate and Information
Systems Planning
Information Systems Planning
1. Describing the Current Situation
(Continued)
 Matrices are developed to cross-reference units
 Location-to-Function
 Location-to-Unit
 Unit-to-Function
 Function-to-Objective
 Function-to-Process
 Function-to-Data Entity
 Process-to-Data Entity
 Process-to-Information System
 Data Entity-to-Information System
 Information System-to-Objective
5.20

21. Corporate and Information
Systems Planning
Information Systems Planning
2. Describing the Target Situation
 Update list of organizational locations,
functions, etc. to reflect desired locations,
functions, etc.
 Matrices are updated to reflect future
states
 Planners focus on differences between
current lists and matrices and future lists
and matrices
5.21

22. Corporate and Information
Systems Planning
Information Systems Planning
3. Developing a Transition Strategy and
Plans
 Broad, comprehensive document that
looks at both short and long-term
organizational development needs
 Consists of a series of projects
5.22

23. Electronic Commerce
Applications
Development process for Internet
projects is no different than other
projects
Special issues need to be taken into
account
Electronic Commerce (EC)
 Internet based communication designed to
support business activities
5.23

24. Internet Development
Internet
 Worldwide network of networks used for electronic
commerce
Intranet
 Internet-based communication to support business
activities within a single organization
Extranet
 Internet-based communication to support
business-to-business activities
5.24

25. Internet Development
Electronic Data Interchange (EDI)
 The use of telecommunications
technologies to transfer business
documents directly between organizations
Internet vs. Intranet/Extranet Apps
 Intranet/Extranet – Developer knows how
application will be run and used
 Internet – Developer faces various
unknowns
5.25

26. Summary
Project Identification and Selection
 Identifying Potential Development Projects
 Classifying and Ranking Projects
 Selecting Projects for Development
Top-down and Bottom-up identification
process
Corporate strategic planning
 Process of identifying the mission, objectives and
strategies of an organization
5.26

27. Summary
Information Systems Planning
 Orderly means for assessing the information
needs of an organization and defining the systems
and databases that will best satisfy those needs
 Top-down process
Electronic Commerce
 Internet
 Intranets
 Extranets
 Electronic Data Interchange
5.27